The former Deputy Prime Minister, Angela Rayner, has launched an attack on the Chancellor, Rachel Reeves.
Rayner told entrepreneurs at a conference in Liverpool that she has spoken with many business owners and understands that the Chancellor’s soaring taxes are damaging businesses and the high street, with many closing at a far more rapid pace than ever seen before.
Rayner said that Reeves’ constant attacks on businesses through higher taxes, employers’ National Insurance and business rates are risking “confidence” in politics and among consumers.
Rayner told the conference: “Over the last few weeks, I’ve spoken candidly with businesses in my own constituency, and many beyond it, and they say it’s a huge challenge they’re facing — and a challenge just to stay afloat.
“Customers aren’t there in the way they used to be, as business rates remain punishingly high, energy bills soar, and costs in supply chains and VAT bite.”
Rayner is urging the Chancellor to produce a plan “to aid recovery, to stabilise costs, to give businesses breathing space”.
“I believe the Government should look at how to support the night-time economy to thrive once again — not ideologically, but pragmatically.”
Rayner said that Reeves’ business rates policy is damaging the hospitality industry, and she noted that governments across the European Union “recognise that hospitality and nightlife require extended support — not handouts”.
Last October, a major pub group called on the Government to stop making “bad policy” decisions, saying they are “sucking cash” out of pubs.
Jonathan Neame, the chief executive of hospitality firm and brewer Shepherd Neame, told the PA news agency there is still hope in the industry. He said the hospitality sector needs reduced policy pressure in order to be successful.
In the 2025 Autumn Budget, the Chancellor announced increases to employers’ National Insurance and the National Minimum Wage, which cost businesses millions.
Neame said: “If you look at the cost rises we’ve faced, more than half of that is down to bad policy, and it is all sucking cash out of businesses like ours.
“If the Government isn’t throwing roadblocks in front of pubs, we will grow and invest.
“The sector is full of opportunity and it is still an attractive area, but decisions from Government have absolutely made things harder, and it is important to move on from recent negativity.”
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